by Matt Krantz, USA TODAY

by Matt Krantz, USA TODAY

Google's stock busted past $800 Tuesday, the latest barrier that this increasingly powerful advertising company has stormed through with ease.

Shares of the company, which uses technology products to lure consumers to share personal details used for ad targeting, have jumped 14% this year. Google's success comes as it has not only largely beaten the government's efforts to curb its growing dominance but also eroded Apple's power in mobile devices.

The fact that Google's stock closed at $806.85 Tuesday by itself isn't meaningful, but the powerful rally is "reflective of the fact Google is still doing well," says Ryan Jacob of the Jacob Internet fund. Google's rise above $800 is important in that it:

* Widens the company's relative market power. Google, which went public in August 2004, now is worth $266 billion, making it the third-most-valuable company in the Standard & Poor's 500 behind only Apple and ExxonMobil. Google is worth more than both Warren Buffett's Berkshire Hathaway and General Electric. Google's rise comes as shares of Apple have fallen nearly 14% this year.

* Marks the end of lingering investor concerns. Google stock was a laggard last year, gaining 9.5%, trailing the 13.4% price appreciation of the S&P 500. Investors had lots to worry about, including a variety of regulatory probes and concerns the company would be less profitable as more users moved to mobile devices, says Rick Summer of Morningstar. But Google's regulatory issues have been largely resolved, Summer says. Investors are pleased to see Samsung is outselling Apple with its smartphones running Google's Android operating system, Jacob says.

* Proves the profitability of collecting personal information for ads. The rise of Google's share price reinforces the profit power of what Google does, Summer says. That's especially true with Android, he says. "If you use Android, Google knows what you're doing, be it viewing a Web page or performing a search," he says. "That's making their (Google) database that much richer," he says.

Investors are wondering what to expect next. Currently, shares of Google sport a trailing P-E of 25, more than 50% higher than the market. Google shares are about 8% overvalued, Summer says. There's also speculation, fanned by a Wall Street Journal report, that Google may look to open retail stores, a move Summer says may have marginal value, if true.

But with shares soaring, any questions about Google's dominance are put to rest. "The gap has closed," Jacob says.